Patria Investments Limited · NASDAQ:PAX
Patria Investments — Q2 2023 Earnings Presentation
27 slides from Patria Investments's earnings presentation, Aug 3, 2023
Slide 1: Patria's Second Quarter 2023 Earnings Presentation
Patria’s Second Quarter 2023 Earnings Presentation AUGUST 3, 2023 1
Slide 2: Disclaimer
Disclaimer This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “outlook,
Slide 3: Patria Reports Second Quarter 2023 Results
Patria Reports Second Quarter 2023 Results AUGUST 3, 2023 – Patria Investments Limited (NASDAQ: PAX) today reported its unaudited “Patria’s second quarter results reflect continued results for the second quarter ended June 30, 2023. solid financial performance, as we delivered Dividend Distributable
Slide 4: Patria Reports Second Quarter 2023 Results
Patria Reports Second Quarter 2023 Results AUGUST 3, 2023 4
Slide 5: Patria's Second Quarter 2023 IFRS Results
Patria’s Second Quarter 2023 IFRS Results ▪ IFRS Net Income attributable to Patria was US$35.7 million for 2Q23 and US$52.9 million YTD (US$ in millions) 2Q22 2Q23 YTD 2Q22 YTD 2Q23 Revenue from management fees 55.6 63.1 110.2 121.9 Revenue from incentive fees 0.1 0.0 0.1 0.1 Revenue from performanc
Slide 6: Highlights
Highlights Fee Related Earnings of Performance DE per share $34 mn in 2Q23 $11 mn Related Earnings in 2Q23 $0.30 Dividend yield of 5+% of in 2Q23 at a margin of 56% already secured and and $65 mn YTD $40 mn Dividend/share $o.251 YTD based on beginning of the as we reiterate our $150 mn FY23 target o
Slide 7: Patria's Second Quarter 2023 Summary
Patria’s Second Quarter 2023 Summary ▪ Fee Related Earnings (“FRE”) of $33.8 million in 2Q23, up 9% compared to 2Q22 ▪ Performance Related Earnings of $10.7 million in 2Q23, compared to zero in 2Q22 Financial ▪ Distributable Earnings (“DE”) of $43.6 million in 2Q23, up 50% compared to 2Q22 Measures
Slide 8: Patria's Second Quarter 2023 Earnings
Patria’s Second Quarter 2023 Earnings ▪ Distributable Earnings (“DE”) of $43.6 million in 2Q23 (US$ in millions) 2Q22 2Q23 %Δ YTD 2Q22 YTD 2Q23 %Δ Management Fees 55.6 61.6 11% 110.2 119.1 8% (+) Incentive Fees 0.1 0.0 0.1 0.1 (+) Other Fee Revenues 0.9 0.5 2.0 1.0 (–) Taxes on Revenues (1) (0.9) (1
Slide 9: Fee Related Earnings ("FRE")
Fee Related Earnings (“FRE”) QUARTER $55.6 +9% $60.8 Total Fee Revenues million million ▪ Fee Related Earnings of $33.8 million in 2Q23 were up 9% compared to 2Q22, in line with our Total Fee Operating Expenses 24.6 +10% 27.0 Revenue growth of 9% for the same period Fee Related Earnings 31.1 +9% 33.
Slide 10: Net Accrued Performance Fees
Net Accrued Performance Fees ▪ Net Accrued Performance Fees were $472 million on June 30, 2023, up 8% from $437 million on March 31, 2023 ▪ Additional $10 million of Net Accrued Performance Fees added for growth equity as a result of the completion of Patria’s full acquisition of Kamaroopin ▪ $11 mi
Slide 11: Total Assets Under Management
Total Assets Under Management ▪ Total AUM of $28.2 billion as of June 30, 2023, up 7% from $26.3 billion one year ago ▪ LTM growth was driven by capital inflows of $3.3 billion together with positive valuation and currency impact of $2.6 billion, partially offset by outflows of $(3.9) billion which
Slide 12: Portfolio Activity - Drawdown Funds
Portfolio Activity - Drawdown Funds Total Deployment1 ($mn) (Invested + Reserved) 3Q22 4Q22 1Q23 2Q23 LTM 2Q23 ▪ $214 million deployed in 2Q23 and Total - 635 131 214 980 $980 million in the LTM Private Equity - 515 - 194 709 Infrastructure - 120 127 - 247 ▪ Positive valuation impact of $257 Others2
Slide 13: Fee Earning Assets Under Management
Fee Earning Assets Under Management ▪ Fee Earning AUM (FEAUM) of $21.6 billion was up 15% from one year ago driven by $3.2 billion of inflows and $1.6 billion of valuation and currency impact, partially offset by $2 billion of outflows ▪ Management Fees of $61.6 million in 2Q23 were up 11% compared
Slide 14: Platform Overview by Asset Class
Platform Overview by Asset Class Currency Exposure Effective Mgmt. Asset Class FEAUM by Structure Fee Basis Duration Hard / Soft (%) Fee Rate Private Equity $6.7bn 100% Drawdown Funds Deployed Capital at Cost Long-dated & Illiquid 91% / 9% 1.7% Hybrid: Committed/ 93% Drawdown Funds Long-dated & Illi
Slide 15: Total AUM Roll Forward
Total AUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total June 30, 2023 ($mn) Distribution AUM 2Q22 10,219 5,511 4,797 2,060 1,373 2,355 26,315 Acquisitions1 468 - - - - - 468 Inflows2 447 565 340 450 402 614 2,818 Outflows3 (249) (1
Slide 16: Total FEAUM Roll Forward
Total FEAUM Roll Forward Twelve Months Ended Advisory & Private Equity Infrastructure Credit Public Equities Real Estate Total June 30, 2023 ($mn) Distribution FEAUM 2Q22 5,281 3,672 4,618 2,061 1,303 1,837 18,773 Acquisitions1 222 - - - - - 222 Inflows2 1,266 148 338 452 380 363 2,948 Outflows3 (75
Slide 17: Investment Performance - Drawdown Funds
Investment Performance - Drawdown Funds Committed Deployed Total Unrealized Realized Total Net Returns (i n Thous a nds , Except Where Noted) Capital + Reserved Invested Investments Investments Value Total Value Value Value Value Gross MOIC Net IRR Net IRR % Fund (Vintage) (USD) (USD) (USD) (USD) (U
Slide 18: Investment Performance - Credit & Public Equities
Investment Performance - Credit & Public Equities Compounded Annualized Net Returns Functional Strategy AUM Excess Return Asset Class Strategy Since Currency (USD Mn) 1yr 3yr 5yr Since Incept. Incep. Latam Equities (2008) USD 1,168 36.6% 12.6% 6.0% 3.7% Benchmark: Latam Equities Index 32.3% 16.4% 5.
Slide 19: Reconciliations and Disclosures
Reconciliations and Disclosures 19
Slide 20: Share Summary
Share Summary 2Q22 3Q22 4Q22 1Q23 2Q231 Class A Common Shares 54,247,500 54,247,500 54,247,500 54,247,500 54,930,241 Class B Common Shares 92,945,430 92,945,430 92,945,430 92,945,430 92,945,430 Total Shares Outstanding 147,192,930 147,192,930 147,192,930 147,192,930 147,875,671 (1) 682,741 shares is
Slide 21: Patria's Earnings - 5 Quarter View
Patria’s Earnings – 5 Quarter View (US$ in millions) 2Q22 3Q22 4Q22 1Q23 2Q23 Management Fees 55.6 55.8 54.6 57.5 61.6 (+) Incentive Fees 0.1 0.1 5.9 0.1 0.0 (+) Other Fee Revenues 0.9 0.5 1.7 0.5 0.5 (–) Taxes on Revenues (1) (0.9) (0.9) (1.1) (1.0) (1.3) Total Fee Revenues 55.6 55.4 61.0 57.1 60.8
Slide 22: Reconciliation of IFRS to Non-GAAP Measures
Reconciliation of IFRS to Non-GAAP Measures (US$ in millions) 2Q22 3Q22 4Q22 1Q23 2Q23 Management Fees 55.6 55.8 54.6 57.5 61.6 (+) Incentive Fees 0.1 0.1 5.9 0.1 0.0 (+) Other Fee Revenues 0.9 0.5 1.7 0.5 0.5 (–) Taxes on Revenues (0.9) (0.9) (1.1) (1.0) (1.3) Total Fee Revenues 55.6 55.4 61.0 57.1
Slide 23: IFRS Balance Sheet
IFRS Balance Sheet (US$ in millions) 12/31/2022 6/30/2023 (US$ in millions) 12/31/2022 6/30/2023 Assets Liabilities and Equity Cash and cash equivalents 26.5 22.4 Client funds payable 23.6 19.1 Client funds on deposit 23.6 19.1 Consideration payable on acquisition (9) 33.2 44.7 Short term investment
Slide 24: Notes
Notes Notes to page 5 – Patria’s Second Quarter 2023 IFRS Results (1) Performance fees determined in accordance with the funds offering documents and/or agreements with Limited Partners, based on the expected value for which it is highly probable that a significant reversal will not occur (2) Taxes
Slide 25: Notes
Notes Notes to page 10 – Net Accrued Performance Fees (1) Beginning with 1Q23, we are reporting Net Accrued Performance Fees balances net of related compensation and revenue taxes only. Disclosures in prior periods were also reflected net of related corporate income taxes and for comparative purpose
Slide 26: Notes
Notes Notes to Page 22 – Reconciliation of IFRS to Non-GAAP Measures (1) Deferred Taxes are temporary taxable differences mostly from non-deductible employee profit sharing expenses, performance fees and quarterly revaluation of derivatives (IFRS note "Income Tax Expenses") (2) Amortization of busin
Slide 27: Definitions
Definitions • Distributable Earnings (DE) is used to assess our performance and capabilities to distribute dividends to shareholders. DE is calculated as FRE deducted by current income tax expense, plus net realized performance fees, net financial income/(expenses). DE is derived from and reconciled